the market. has come to. find out what's really happening to the global economy with my stronger for a no holds barred look at the global financial headlines tune in to congress report . here with god to. japan a crisis itself for the last sighted stricken nuclear power plant ice coating systems up to more reactors appear to be faltering and skyrocketing fears of a total nuclear meltdown the same problem is exactly what triggered the explosions on monday and tuesday. authorities claim a radiations are reaching dangerous levels near the plant so far two hundred

thousand people have already fled. to three thousand people last confirmed dead so far i don't know four thousand are officially missing since friday's make a quake and colossal tsunami but reports suggest the final toll will be much higher . level exabytes from the international atomic energy agency head to the disaster area to offer their assistance some say the devastation is proof that the world to come to cope with the problems it has helped to create and the nuclear power comes at too high a price. to argue stay with us the report is next. i am max kaiser and this is the kaiser report reporting to you on the global insurrection against the banker occupation there are revolts everywhere they're all

attacking the corrupt bankers we're going to get into the headlines i want to introduce stacy herbert stacey. yeah i have a headline for you and you're going to give us some comments on it yeah nine eleven crybabies needed to pick cotton for two dollars a day i ask you to comment on this because it is your headline you know i wrote that on my site i talk about these nine eleven private you know since nine eleven there's been an effort to make sure this never another nine eleven but of course this is the worst thing that could possibly happen to the american economy because if you're competitive if you're trying to expand your global franchise you've got to take risks and you've got to take the risk of being hit with an occasional nine eleven every ten or fifteen years there should be and i love it this show that america's got a pulse that it's out there actually expanding its business franchises around the world the fact that there hasn't been shows up in the statistics in terms of loss of competitiveness high unemployment and the control by kleptocrats so the u.s.

the americans if you want to get back in the game here on the global competitive stage you should wish for another nine eleven all right so let's go to the headlines but you bring up this notion of nine eleven and this is something that also triggered a very deep partisanship and america and also allowed for the looting of america by on unfunded wars and this is the phenomenon we've referred to before where that famous psychological experiment where you're told to watch the black shirts in the white shirts playing each other in basketball and and you have to count the number of times that passed the basketball. back and forth to each other and in speke spearmint runs a gorilla most people don't see it and that's i think what we see in the global economy nobody ever sees bankers know running through the crime scene because we're too concentrated on whether or not how many muslims are getting into the country or how many red states are getting an unfair advantage or how many women union members

are getting unfair advantage those are just on a lot of the kleptocrats i'm talking about the koch brothers and scott walker in wisconsin play the divisive game they play the sectarian game red state blue state game to try to divide people and then once cowering in fear and they're losing their mojo in america they can't compete anymore and one of these are just bear down put their shoulder to the wheel and to support another nine eleven because that's the best thing that could happen it's not the best thing that happened could happen actually when when people orchestrate these attacks they do it in order to divide and conquer so the next time it happens they should know better that this is what happens and we see this through all of our next headline just quick point when you're learning to ride a bicycle you fall down occasionally that's what happens when you go through they call creative destruction economics it's the same thing in politics this is same thing in empire building so don't reject it except with squatters take over it safe cut off these london home so this is a protest group called topple the tyrants and they've seized what it describes as

the libyan government's corrupt and stolen assets but their own prime minister of course helped the libyan government steal that's right that's right tony blair made it possible for a good thing to steal incredible amounts of assets now the protesters are squatting but it could be held property in london and they want their money back of course and we should see this all over the world to people should squat outside scott walker's house and demand that back because that was stolen was probably taxpayer money they're seizing the house. they squatted in until the assets are sold and given back to the libyan people it's ten million pounds but i. meantime we're going with this theme of the gorilla running through their room their own economy has been taken they're paying austerity measures an order to finance the banker heist lord hutton public sector reforms who will lose out so lord remember who whitewash the whole tony blair. put the b.b.c.

totally on the back during the hutton inquiry that's correct but he's come up with these new public sector reforms in which workers in the public sector will face a radical overhaul of their pension schemes but here is a paragraph that stood out to me more public sector employees who are now living and drawing a pension for longer has created an estimated thirty billion pound black hole in the plug in the public finances so thirty billion pound black hole and people are outraged at the public sector sponges you know who's feeling all our money from us did you see any outreach for these two have lines one from two thousand and nine bank bailout to add up to one point five trillion to public debt that's from two thousand and nine here's from the end of two thousand and ten ireland bailout u.k. taxpayers could face seven billion pound bill for some bondholders

and bank that didn't even have deposits so there's thirty billion dollars black all the point is that the non public sector union workers could just as easily fight to get a thirty billion dollar raise so that there is parity in the worker space that workers would get some kind of decent wage instead of filing a motion selves and one of the bankers the quotes the terrorist get away scot free they're complete idiots it's the same thing in the u.s. in this wisconsin thing the public pensions are being attacked as well they're morons but all you see is david cameron or in the us you see the whole of bombing administration they all came in on this wave of unrest. about the banking theft and in office both of them have only targeted workers making fifty thousand dollars a year not the guys who stole fifty trillion and the population immediately falls into that guys making fifty thousand i wouldn't make that ever in my lifetime working at wal-mart if i wanted to send me an example of

a campaign promise that obama did not break i'll wear a dress on this show i'm going to find one good look the guy's been three hundred sixty degrees of disappointment a total utter fraud and a punk well here's some more gorilla bankers running through the rampaging through the globalist like a quick comment here if you want to see these gorillas go to youtube search the phantom gorilla you tube and play this for yourself you'll see that it works you're focusing on the basketball players and you totally miss the gorilla running through the frame this is this is what stacey is saying is that people are focused on the stupid stuff and they missed this bill will walk through the frame that's stealing the money. brothers arrested in cow thing raids so these are brothers vince and the robert chiang guess who are arrested by the serious fraud office in the city of london police the serious fraud office that is investigating allegations of market abuse fraud and excess of loans financial claims against cow thing bank run to five

times iceland's g.d.p. s f o n s and icelandic officials started an investigation and to ascertain whether substantial value was extracted from the bank in the weeks and days before it collapse you need the very expensive our investigation paid for by the taxpayer of the u.k. to see whether or not there was any fraud involved in that one of these us a phone guys in a room took out a large frying pan and gotten on the head and see how much more there's been investigating whether or not they just got on from there with a frying pan i mean the country just got looted your job was to go after the looters oh yeah i forgot you're brain dead but if you. kathleen bank owes the u.k. two point five billion pounds ok. so much less anger over that by the population than against a public sector union worker and also one of these bank guys arrested was the former treasurer of the bank after the collapse of the bank you then went to work

for the f.s.a. the financial services authority in the u.k. yeah it's an amazing amount of corruption in iceland and u.k. exceeded only by the banking corruption in ireland and it's also one didn't as these guys topple the tyrants are looking at some guys in the middle east in their midst are running wild these bankers looting all the world and using london as a safe harbor you know they're totally blind to the looters amongst them there and you know it's not just a river in egypt. here's another headline don't get mad get even so this is in wisconsin the whole coke brother scott walker story labor vows to recall wisconsin g.o.p. lawmakers fight anti-union building court so governor scott walker republican of wisconsin and his republican allies in the state senate took nearly everyone by surprise and pushed through a standalone bill stripping public employees of their collective bargaining rights

and you know to the media they always say it's the public sector unions they keep on talking about that we're just getting rid of these unfair advantage they have they never mention that the exclusion exclusion to this bill are firemen and police unions the unions are targeting are teachers and nurses which are almost all female so this is that sectarian divide divide and conquer you know psychologically many in the the religious fundamentalist sort of base of the republican party will endorse that that women should be in the home anyway oh this guy scott walker obviously does want to pick a fight with a fireman or a policeman because he's a bully he's afraid of a man a real man somebody who's not a pencil necked you know some. breathing nincompoop drug policy making koch brothers underwear or something moron so anything that's against women and women he'll be endorsing because he's an embarrassment to wisconsin he's an embarrassment to america there should be a regime change of wisconsin this guy's asses should be seized he should be thrown in jail he was caught committing acts of tyrannies a cold brothers he's a he's

a criminal and no punishment it would be too cruel and so because of all these banking guerrillas again looting in plundering everybody money continues to be printed and printed and printed so headline reads warning of food price riots in the u.k. . a senior economist at the worldwide bank h.s.b.c. has warned of civil unrest in britain if food prices continue to soar she said quote even in the developed world i think we have very very low wage growth so people aren't getting more in their pay packet to compensate them for food and energy and i think we could see social unrest certainly in parts of the developed world and the u.k. as well she doesn't blame the money printing that's going on in order to bail out the bankers she blames high energy prices which in turn leads to more biofuels

so you can see where the go here will be it'll be not on bankers not on the banking guerrillas running rampant through our economies it will be on it ecologist and people like that this isn't sort of the money you know they get there just a few generations most of these people complaining they come from peasant stock they'll return the person stock bluster good luck and servants you know never have any civil rights you never had any legal rights is pretty magna carta get back in a ditch and start day again and you know that was a dream democracy never happened for you or your family it's over so finally max she does however point out the very low wage growth very low wage growth. she says she emphasizes that this is a big problem as prices continue to rise but all of those very low wage growth people they respond by saying make my neighbor also make less money right out me make more right we've talked about this many times before workers are tricked into believing that they should tie their wages to inflation or c.p.i.

and those numbers are cooked by the government so that they don't have to pay wages and they don't pay anybody retirement benefits if you're smart and your own marker if you're a cop if you're a farm and if you're a nurse you do real work out there you got a hedge fund guy who's just spinning paper and trade going inside information you shouldn't bargain to have your compensation tied to money supply growth if the u.k.'s money supply grows by ten percent or fifteen percent here and so set your wages otherwise you're cooked your goose is cooked but wait a minute money supply that that has four syllables oh no it might be too much for you to handle all right say as ever thanks so much for being on the cars report thank you don't go away much more coming your way stay right there.

will be. renewed elitists in science and technology from. the future covered. but i go back to the kaiser report time now to go to san francisco and speak to richard heinberg of the post carbon institute richard the author of several books including the party's over blackout peak everything what's happening i've read myself and found to be extremely interesting and there's no book at the end of growth richard i read welcome to the kaiser report thank you may still be with you all right richard i'm of your latest book is called the end of growth tell us about it well the book unfortunately is not out yet but it makes the controversy will

claim that world economic growth has hit non-negotiable limits as of two thousand and eight and that we're in a new economic era it's not a recession will end at some weight and we'll head back to normal growth rather we have seen the end of economic growth as we know it if in fact this shouldn't be a big surprise the bestselling environmental book of all time back and in one thousand seventy two was called limits to growth and it forecasts that sometime in the early twenty first century resource depletion and population growth will lead us into a cul de sac to such the. world economic growth which would cease i believe we're at that point and it's largely because of oil prices which essentially are forming a cap on economic growth if the opponent if the economy starts to recover that pushes oil prices up and went well prices go out they undercut economic activity so

. all the cheap easy oil is gone it's not that we're about to run out of oil but the price of extraction and. exploration is rising rapidly so at this point i believe enter. energy prices or effectively capping economic growth ok so time back in a way early early years of the london school of economics there was thomas marcus he came up with the north to the end dire prediction which set the stage as a matter of fact for the entire field of economics being referred to as the dismal science that there would be of course the. arithmetic growth of resources versus jim africa out of the population that we'd run out of resources the economy would come crashing through our know what he didn't count on is innovation technology and everything we've seen since that time why is this time different alright the

biggest thing that thomas loftus missed was the fossil fuel era he had no way of knowing that there would be enormous amounts of cheap energy available to fuel economic growth and also to fuel industrial agriculture which nobody dreamed in not assist time. even as recently as the one nine hundred eighty s. and one nine hundred ninety s. there was a strong argument that resources would not get more expensive because. of. innovation as you say we would just get better at extracting lower and lower grades of resources well since two thousand the situation has turned around earlier just making the bets you really and i think most of us was were essentially saying. what he said too early as well he said there would be limits to food supplies if population keeps growing i think is absolutely right we're seeing food prices going

through the roof right now at this well as energy prices. these limits are elastic to a certain extent we can push them out with with efficiency with energy efficiency with more global trade by using more energy to extract lower grade resources and so it. there are limits to all of those strategies and i think we're reaching those limits as well all right let me ask you a question or heard something recently i want to comment on it then has to do with the amount of debt that's in the global economy and there the the hypothesis is as follows to pay our debt requires a certain amount of growth and of course in our modern twenty first century world growth means only oil oil driven growth and the commentator there read was suggesting that the amount of growth it would take to generate the ability to pay off this debt versus the amount of oil in the ground that could be burned to

engineer that growth does not exist in other words we have more debt then we have oil to burn to finance the retirement of that debt are you familiar with that equation and if so could you comment on it well i think that's that's probably true but the point is really that we create all this debt to fund the economic growth we we have even created modern currency as a form of debt we loan money into existence so without increasing levels of debt we have no way to increase the money supply to fund economic growth. you know this seemed to make sense in decades past when we had lots of cheap energy with which to make the economy grow but yes energy resources get more

serious and expensive not only oil but but coal as well. as that happens. you know that we end up with this huge debt overhang there's no way that those debts can ultimately be chaos and this is a effectively what happened in two thousand and eight we had the bursting of a housing bubble. your house prices couldn't keep increasing forever but also in two thousand and eight we had the oil crisis like. almost one hundred fifty dollars a barrel and those two things together the bursting of the housing bubble in the oil price spike so the economy into a tailspin we remember the housing bubble that most people forget about the oil crisis but we're not going to forget for one because the same thing's happening this year again right tell us about the goal the large center as you call it your thoughts on how markets may respond to this resource scarcity the goldilocks

syndrome is is a term actually invented by a new york times writer who. invented the i think it's a really good metaphor to use for the situation we're in because we need oil prices to be within a certain narrow band in order for the economy a function these days to fund exploration and production or oil companies need prices in the range of at least seventy dollars per barrel because all the cheap easy stuff is gone we use the low hanging fruit principle resource extraction for looking for oil and we have gotten all of the low hanging fruit richard heinberg you're in your near san francisco north of san francisco yet you're in an area of course near silicon valley which is the home of our federalism and venture capital and thought of that would entice an apple computer and all these whiz bang shiny the last evil products coming off the assembly line and it seems tell us

about what's happening on the ground there in san francisco is there an awareness of this pick everything. phenomenon or is there this bly kind of. leave that technology is going to save the day is there any is there a comprehension there in san francisco or is everyone just. continue to play the man for capital gang i think if you took a poll of the general population here in northern california. you get a strong majority of people believing that innovation can continue to solve our problems in perpetuity and we we don't really face an fundamental resource limits but as i say that is changing as oil prices as food prices go up people start to get worried and. i guess their worry is that innovation can't can't keep up and we're not investing enough but i would go further i would say that there are you know basic limits to what we can accomplish with efficiency substitution innovation

we're getting those i think not many people would agree with that yet now i've seen a phrase being bandied about financial websites a lot. it's a phrase by place in which is different stagflation by place in commodity prices rising while wages are terrier raining do you buy into the threat and what is the threat is mean if you have a comment on that but i think that is what we are seeing and what we are going to see. and i think not many financial commentators really understand what's behind it not many of them would agree that it's it's a result of fundamental scarcity. as i've said earlier we reached the low hanging fruit we've already picked the low hanging fruit in terms of well coal natural gas minerals freshwater fish

forests etcetera etcetera and so as time goes on we're inevitably having to expend more effort to harvest resources and that effort is energy so if energy itself is also becoming becoming more scarce and we get into a whole the sack and therefore you know even if we can raise wages with inflation. prices of basic resources are going to rise faster than wages right now unlike the areas of inflation in the path or even the stagflation of the nineteen seventies we did have a lot of course there were a lot more union union representation at that time he did have wages at least keeping up to some degree without with happening on the inflation front ok so let's look forward a year two years five years ten years down the road what does a post carbon economy look like well look smaller than the economy we see around us

today and it's also more localized because. globalization is based on cheap transport he will so as transport fuel gets more expensive that changes the the equations with regard to the comparative advantage. in globalization so we will see more production regionally now doesn't mean you know global trade will go away overnight or altogether at any point but it is going to shift. also we're going to need to become more generalists rather than being more and more highly specialized. were we more and more of us are going to have to know how to grow food how to take care of her so and terms of health care and so on. and so that's really going to change quite daily life looks like it's not just going to be a matter of hopping in the car and rushing over the other side of town to buy

a new flat screen t.v. we're going to be more concerned about providing basic necessities for ourselves and a good pair of new shoes or for example is going to be a much bigger deal for us in five or ten years there and then it has been ok well that's the what is coming out in hopefully in an a in a couple months right call the end of growth at the follow up. block out and peak everything which basically is exactly what it what it says it's about all the various natural resources we're now in the endgame as the the neoliberal industrial model has eaten up i'm all of the cheap availability of these resources so i look forward to seeing when the book comes out the end of growth richard heinberg thanks so much for being on the kaiser report it's been great talking with you but actually it's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest richard heinberg if you want to

send me an e-mail please do so at kaiser reported r t t v are you so next time this is max kaiser say by. the way.